Gold price meltdown? XAU/USD Weekly Outlook 19th - 23rd Oct

 As we have discussed, 

1st Motive wave: $1050 - $1073 during the 1st motive wave tiny five waves is developed which can see on a lower time frame. for the clarity, we are not going in the lower frame.

2nd wave correction: Deep correction of 1st wave around Fibonacci 61.8% is unfolded. 2nd wave correction gives us clue for the 4th wave shallow correction around 23.6 or 38.2% as the rules of alternation of Elliott.

3rd Motive wave: $ 1160 - $ 2075. 3rd wave unfolded as Fibonacci 261.8% of the 1st wave, which is considered as an extended wave so the 5th wave may be normal.

4th Correction wave: Shallow 23.6% correction unfolded as we have forecasted after completion of deep 2nd wave. So then we assume that 4th wave completed @ 1848 and the new 5th impulse wave started.

Now we will forecast 4th wave again,

Gold Daily Chart :

Gold daily Chart

On the daily chart, we can see 4th wave correction Fibonacci 23.6% is @ 1861 and we have to find out whether 4th wave correction completed @23.6% or pending for 38.2% @ 1726.

As 2nd wave was flat correction it may zig-zag for 4th wave. Let's see 4 Hr time frame,

xau/usd elliott wave

4th wave correction as ABC (Zig-Zag Pattern, 5-3-5) :

A wave: A leg is Five wave Zig-zag correction as showing on chart tiny waves of A leg as 12345 completed @ 1862

B wave: B leg Triangle Pattern & it is corrected A leg to 50% @ 1973

C wave: As we know C leg always have Five waves. let's zoom the c wave,

gold xauusd elliott wave

Or It may Double Zig-Zag,

Double Zig-Zag Correction

1st wave of the C wave having a Five sub-waves from 1973-1848

2nd wave corrected 1st wave to 61.8% @ 1933

3rd wave forecast at least 123.6% of 1st wave nearly 1780. So till date, we just forecast 3rd wave up to 123.6%. 

As waves progress, we will decode next move.

This analysis nullified if Gold trade above recent high 1934.


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